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Global economic recovery is fragile - World Bank

Global economic recovery is fragile - World Bank
By Kabanda Chulu
Sun 24 Jan. 2010, 04:00 CAT

THE World Bank has warned that global economic recovery is fragile especially that the impact of fiscal stimulus is decreasing. It stated that the financial markets had remained troubled and the private sector demand to develop had delayed in the midst of high unemployment.

According to the 2010 Global Economic Prospects released by the World Bank in Thailand on Friday, the fallout from the crisis would change the landscape for finance and growth over the next 10 years.

“The global economic recovery that is now underway will slow later this year as the impact of fiscal stimulus wanes and financial markets remain troubled and private sector demand lags amid high unemployment,” it stated. “While the worst of the financial crisis may be over, the global recovery is fragile and the fallout from the crisis will change the landscape for finance and growth over the next 10 years.”

It stated that global gross domestic product (GDP), which declined by 2.2 per cent in 2009, is expected to grow by 2.7 per cent this year and 3.2 per cent in 2011.

“Prospects for developing countries are for a relatively robust recovery, growing 5.2 per cent this year and 5.8 per cent in 2010, up from 1.2 per cent in 2009. GDP in rich countries, which declined by 3.3 per cent in 2009, is expected to increase much less quickly, by 1.8 and 2.3 per cent in 2010 and 2011 respectively and world trade volumes, which fell by a staggering 14.4 per cent in 2009, are projected to expand by 4.3 and 6.2 per cent this year and in 2011,” stated the report.

Labels: GREAT DEPRESSION II, World Bank

posted by MrK @ 9:00 PM